Article

Lula and the Continuity of Neoliberalism in Brazil: Strategic Choice, Economic Imperative or Political Schizophrenia?

Authors:
To read the full-text of this research, you can request a copy directly from the authors.

No full-text available

Request Full-text Paper PDF

To read the full-text of this research,
you can request a copy directly from the authors.

... Com um agravante: desta feita, muitas das críticas advinham de apoiadores e/ou militantes do próprio partido governista e de outras agremiações de esquerda (Morais & Saad-Filho 2005). No caso do meio acadêmico, por exemplo, parte da produção crítica (muitas vezes ensaística), representou um "rompimento político-ideológico com o governo Lula por parte de acadêmicos ditos 'heterodoxos'" (Morais & Saad-Filho 2011, p. 510, entre aspas no original). ...
... Conforme já mencionado, o cenário eleitoral brasileiro de 2002 foi particularmente conturbado, com a crise daquele ano assumindo tal gravidade que beirou o colapso monetário e cambial (Morais & Saad-Filho 2005;. Mais especificamente, tendo em vista o desfecho cada vez mais provável daquele pleito, o Brasil sofreu com "forte ataque especulativo" em forma de redução de linhas de crédito externo, aumento do "prêmio de risco", exigido por credores para adquirirem títulos brasileiros, e acentuada desvalorização cambial. ...
... cit.), com pretensões claramente orientadas pelo desenvolvimentismo e disposta a tomar decisões desenvolvimentistas. Nesse sentido -mesmo assumindo um Estado à beira de um colapso financeiro e cambial (Morais & Saad-Filho 2005; e mantendo o compromisso com o "controle da inflação", o "equilíbrio fiscal" e o "superávit primário" (Lula 2002), assumido antes da eleição -medidas práticas como a criação do Ministério Extraordinário de Segurança Alimentar e Combate à Fome (MESA) 107 , responsável por implementar a Política Nacional de Segurança Alimentar e Nutricional 108 , e a criação do CDES mostram a atuação do governo no sentido de implementar a estratégia de desenvolvimento pretendida. ...
Thesis
Full-text available
Despite being discussed in a more widespread way since the first years of this century, the question of a possible developmental resumption in Brazil remains open. In this sense, the most general objective of this work is precisely to discuss the possibilities and limits of a contract in this way in this country. To do so, based on a case study - that of the development strategy conducted under the Lula governments - I try to weave two distinct types of analysis. At first, it is the type of strategy carried out: the question to be answered here is whether or not the said development strategy can be typified as developmental. The working hypothesis holds that it does. Next, it is the type of state that led it: the question that guides the analysis becomes if it had the necessary state capacities to do so. This time the hypothesis is negative. The results of the research allowed me to support only one of the hypotheses: i) the strategy conducted between 2003 and 2010 can not be characterized as developmental, although this was his intention from the beginning; (ii) the State that conducted it, in turn, could not count on the necessary capacities to implement a strategy in the way intended. Moreover, in a broader perspective, the work suggests that the debate about a possible developmental resumption in Brazil needs to go beyond the controversies around the more or less adequate type of strategy, taking into account also the type of available state to lead it.
... Em 2003, tendo em vista a evidente continuidade das políticas macroeconômicas, os seus críticos passaram a esgrimir contra o governo Lula os mesmos argumentos endereçados ao governo anterior. Esses críticos, muitos deles antigos apoiadores ou militantes do Partido dos Trabalhadores (PT) e de outras organizações de esquerda, vinham se sentindo crescentemente alienados com a guinada à direita do PT a partir de 1989, e sua acomodação ao jogo político institucional (ver Morais e Saad-Filho, 2005). ...
... Apesar dessa convergência, não havia unanimidade nessa literatura quanto às causas da continuidade das políticas macroeconômicas. A divisão principal se dava entre aqueles que consideravam essa continuidade como produto da fraqueza ideológica do governo Lula, que tinha escolhido trocar de valores ao chegar ao poder (Cardim de Carvalho, 2003;Paulani, 2003), e aqueles que defendiam ser tal continuidade fruto de uma situação contingente de correlação de forças políticas, que impunha o abandono das propostas petistas de administração do Estado professadas antes das eleições (Barbosa e Souza, 2010;Morais e Saad-Filho, 2005;Novelli, 2010;Sallum Jr. e Kugelmas, 2004). ...
Article
Full-text available
From political economy to economic policy: The neo-developmentalism and the Lula administration. This article critically reviews the design of neo-developmentalist economic policies in Brazil, in the first half of the last decade, and their relationship with the economic policies of the Lula administration after 2006. Paradoxically, the neo-developmentalist policies were implemented jointly with the main (neoliberal) macroeconomic policies which had been introduced earlier. The article reviews the relevant literature, and examines the contradictory nature of this 'inflection' of economic policy. So far, this combination of policies has achieved an unquestionable - though provisional - success, despite the persistence of the structural macroeconomic problems due to the continuity of the neoliberal policies.
... This seems to be more clearly the case in Argentina, Bolivia, Ecuador, and Venezuela. The case of Brazil is more one where financial capital was not discredited but accepted, to give room to other sectors of the bourgeoisie (Morais & Saad-Filho, 2005 and these sectors then took a chair at the high table of the state. Simultaneously, at the bottom, some sectors of the subaltern classes (indigenous, peasants, and unemployed) managed to mobilize and organize mass protests, but they were often not matched in this by the urban labouring classes. ...
Article
Full-text available
This paper concludes this special issue. It draws on the findings of the individual contributions and provides a comparison of the agrarian policies of left-wing governments in Latin America. We identify common trends and offer an explanation of why these governments did not change the agricultural model in the direction of food sovereignty, but continued to heavily support agribusiness while redirecting some resources to peasant and family producers. They improved the living conditions of the rural poor, mostly through populist anti-poverty and social protection programmes financed by the commodity boom. They expanded programmes to integrate small farmers into commodity chains and improved the working conditions of rural wage labourers, but did not carry out a redistributive agrarian reform. They instead continued to support agribusiness with numerous policies and measures. We argue that these governments did not curb the power of the dominant rural classes because these are highly intertwined with capital, making them part of a coalesced bourgeoisie that occupies key positions in the state. Leftist governments did not have a real agenda of social transformation or a strategy to tackle the rentier nature of the state. Contradictorily, their policies furthered peasant differentiation thereby weakening the previous alliance of rural subaltern classes.
... The article examines the achievements and limitations of these policies, and the (limited) scope for their continuation in Dilma's Rousseff's administration. Critical Sociology 38(6) associated with the neoliberal reforms introduced in Brazil since the late 1980s, including the liberalization of trade, finance and the capital account of the balance of payments, large-scale privatizations, and other policy shifts consistent with the neoliberal claim that the markets are efficient while state intervention is almost invariably wasteful (see Morais and Saad-Filho, 2005). ...
Article
Full-text available
This article reviews the emergence of neo-developmentalist economic policies in Brazil, in the early 2000s, as a heterodox alternative to neoliberalism. These policies were implemented in the second Lula administration (2006–10), and continued under Dilma Rousseff. However, neo-developmentalism has not simply replaced neoliberalism; rather, these prima facie incompatible policy frameworks have been combined, and the ensuing policies have achieved significant successes despite the intrinsic fragilities and limitations of this hybrid structure. The article examines the achievements and limitations of these policies, and the (limited) scope for their continuation in Dilma’s Rousseff’s administration.
... However, the political deliberations about the pink tide, include an enquiry about whether these centre-left governments represent a continuation or rupture of neoliberalism (Morais and Saad-Filho, 2005;Webber, 2012) or not, that is whether they have moved on to a postneoliberal stage (Grugel and Riggirozzi, 2012). This has been also presented as a question of whether they are leading a reform or a revolution (Webber, 2011b;Regalado, 2009;Moldiz Mercado, 2009;Prevost, 2012). ...
Chapter
All of them out! Much has been written about the Argentine financial crisis and the popular insurrection of December 2001, and their legacies. But today the slogan of the popular insurrection of December 2001, i.e. ‘¡Que se vayan tod@s!’ (referred to as ‘QSVT now onwards) sounds like a beautiful melody that brings nostalgia. Just before the new default of the external debt in 2014 as a result of the pressure from the so called ‘vulture funds’ the country’s economy was stable and the GDP growing. Back to normal the political debate refocused on institutional politics after a period when society had been at the centre of politics. Like in the old times, with the arrival of a new Peronist government to power, society became divided into pro (Kirchneristas) and against (anti-Kirchneristas). Yet, the negation voiced in the event that reverted hopelessness in Argentina remains lurking, indescribable, still unanswered: ‘the desiderium, the only honest attribute of all men, is unexplored’ (Bloch, 1959/1986: 5).
... However, the political deliberations about the pink tide, include an enquiry about whether these centre-left governments represent a continuation or rupture of neoliberalism (Morais and Saad-Filho, 2005;Webber, 2012) or not, that is whether they have moved on to a postneoliberal stage (Grugel and Riggirozzi, 2012). This has been also presented as a question of whether they are leading a reform or a revolution (Webber, 2011b;Regalado, 2009;Moldiz Mercado, 2009;Prevost, 2012). ...
Chapter
An explosion of rage and hope irrupted and expanded throughout the Latin American region at the end of the twentieth century. A general sense of injustice felt by millions asserted itself as a series of demonstrations, mobilisations, struggles, strikes, uprisings and upheavals against neoliberal politics and policy. These collective actions undertaken by citizen, popular, labour and indigenous movements embraced ‘autonomy’ as the tool to resist structural adjustments, and their social, economic and political consequences. These protests and mobilizations soon developed into organizing tools for both to critique capitalism, patriarchal society, coloniality and to explore alternative relations and sociabilities beyond them.
... However, the political deliberations about the pink tide, include an enquiry about whether these centre-left governments represent a continuation or rupture of neoliberalism (Morais and Saad-Filho, 2005;Webber, 2012) or not, that is whether they have moved on to a postneoliberal stage (Grugel and Riggirozzi, 2012). This has been also presented as a question of whether they are leading a reform or a revolution (Webber, 2011b;Regalado, 2009;Moldiz Mercado, 2009;Prevost, 2012). ...
Chapter
In this chapter, I discuss the third mode of autonomous organising (i.e., contradiction) by looking at the struggles of indigenous-popular movements in present Bolivia. Autonomy (self-determination and self-government) is an ancestral practice among indigenous people in Latin America, but it became a new ‘paradigm of resistance’ (Burguete Cal y Mayor, 2010) relatively recently. As a ‘discourse, a practice and a legality’, autonomy became a ‘new political paradigm’ (Patzi Paco, 2004: 187) that positioned them vis-à-vis other paradigms (Burguete Cal y Mayor, 2010: 66).
... This article reviews Lula's administration, highlighting the significance of its achievements from the point of view of the left (on his election and first administration, see Mollo and Saad-Filho, 2006;Morais and Saad-Filho, 2003;2005;2007). It focuses on this administration's implementation of "neo-developmentalist" policies and the gradual (re-)emergence of elements of a welfare state in Brazil-the articulation of a "national" capitalism driven by an alliance between the "national" bourgeoisie, 1 the popular organizations, the informal and rural sector workers, and the state. ...
Article
Full-text available
A review of the achievements of the Lula administration and an examination of the contrasting political and social programs that disputed the Brazilian presidential elections in October 2010 reveal that there has been significant progress toward the consolidation of a social democratic welfare state in Brazil and that further progress is possible but far from guaranteed under the new administration.
... In June 2002, Lula published his famous 'Carta ao Povo Brasileiro' (Letter to the Brazilian People), claiming that the PT represented a 'broad alliance between popular and industrial sectors' (Da Silva, 2002). By then, the PT had moderated its socialist orientation: against more radical sectors of the party, Lula promoted a hybrid neo-developmentalism -termed 'social liberalism' by Bianchi and Braga (2005) and 'left neoliberalism' by Morais and Saad-Filho (2005) -that combined the expansion of financial and export-oriented activities with the extension of social protection, aiming to 'democratise and modernise the country, making it fairer, efficient and, at the same time, more competitive in international markets' (Da Silva, 2002). In the words of Guido Mantega -then principal advisor to Lula, later Minister of Planning and Chairman of the Banco Nacional do Desenvolvimento (BNDES, National Development Bank) -the PT's project did not aspire to make capitalism more efficient, but rather to make it 'more human' (quoted in Bianchi andBraga, 2005: 1753). ...
Article
Relations between business, state, and civil society in Latin America are conventionally discussed in antagonistic or hierarchical terms. This article challenges this position, developing a qualitative case study tracing the activities of an informal network of Brazilian businesspersons that, over the last three decades, promoted an agenda of sustainability, transparency, and civil society participation. Drawing from concepts in social movement theory, it is argued that a dynamic movement-like behaviour combining civil activism, organisational entrepreneurship, and fluid political alignment, allowed the group to establish lasting collaborative alliances with core actors in Brazilian democratic politics, and access relevant elite and policy-making circles.
... Thus, Lula' administrations were considered simultaneously "social movement" governments and "business-friendly" ones (Cardoso and Gindin, 2009), a behavior described during the ABONG Conference as "schizophrenic" [8]. This led both academic critics and supporters to formulate diverse denominations to capture this odd (and unexpected) combination: from negative notions such as "inverted hegemony" (De Oliveira, 2006)[9] to more moderate ones such as "social liberal state" (Bianchi and Braga, 2005) and "left neoliberals" (Morais and Saad-Filho, 2005), to positive characterizations like a pragmatic "third way" (Singer, 2009). During the ABONG conference, a number of attendants characterized this program as "social neoliberal", the term that this article prefers. ...
Article
Purpose – This paper aims to examine the origins and trajectory of the Brazilian corporate social responsibility (CSR) movement in relation to political economic developments in Brazil during and prior to the 2000s. Design/methodology/approach – This paper relies on a historical political account that traces the evolution of the main actors in the CSR movement since the democratization period, details the contacts established with relevant political and civil society groups and outlines the adaptation of their agenda to the changing context. Findings – The long association between a faction of Brazilian business and the Workers’ Party (PT) and the overlapping state – society relations characteristic of the Brazilian political economy explain the domestic and international standing of the Brazilian CSR movement, in particular since 2003 when Lula da Silva came to power. Originality/value – The trajectory of Brazilian CSR and participation in related global initiatives cannot be explained through market-based or isomorphic approaches traditionally used to analyze the diffusion of governance mechanisms in the Global South. Rather, it highlights the relevance of local political structures in shaping involvement in global governance initiatives.
... Brazil's Workers Party (PT) and Thailand's Thai Loves Thai (TRT) were such parties that proved to be capable of both building and representing new social blocs. They were not only popular with the masses who were marginalized by neoliberal policies, but could also mobilize the support of unprivileged or subordinated capital fractions who demanded a renegotiation of their place vis-à-vis the power position of the dominant fraction (Hewison, 2004;Jayasuriya and Hewison, 2004;Morais and Saad-Filho, 2005;Saad-Filho, 2015). Though belonging to different political and ideological currents, these parties can nevertheless be categorized as political representatives of neoliberal populist projects. ...
... In 2002, Lula was elected president after the PT had succeeded at forging a new alliance among the losers of the neoliberal opening policy, including the urban proletariat, domestic market-oriented capital fractions, and parts of the middle classes (Boito Jr, 2003, p. 12;Morais and Saad-Filho, 2005). Also, parts of export-oriented capital fractions, not least several agribusiness companies, rallied behind the government because of its commitment to open up markets in the Global South. ...
Article
Full-text available
Against the backdrop of debates about 'post-neoliberalism', we examine the implications of the global economic crisis for three important semi-peripheral states: Brazil, India, and China. Deploying a framework which combines neo-Gramscian theory, radical economic geography, and materialist state theory, we find that all their political-economic models have undergone processes of substantial neoliberalisation, albeit to varying degrees and partly giving way to countervailing trends well before the global turmoil. The crisis has markedly accentuated ongoing developments. In Brazil, it has reinforced a transition to a neo-developmentalist strategy. In contrast, the Indian elites have quickly returned to the path of gradual neoliberalisation. In China, it is still unclear whether a fundamental social-corporatist regime change will be accomplished. Our analysis thus suggests a divergence of trajectories, rather than a general rebound of the state, let alone a full-blown post-neoliberal transformation.
... Liberalisation of trade, finance and capital flows dismantled the industrial base in many of the country's manufacturing centres and poor economic performance undermined domestic consumption, which, in turn, strangled investment and further exacerbated fiscal imbalances (see Amann and Baer 2000). Much like AKP, PT's first election victory was based on building a 'losers' alliance' unifying different sections of capital, the manufacturing sector above all, under the premises of sustainable economic growth, and providing a wider base of support among the subordinate classes, which had been penalised by job cuts, a decline in real wages and the contraction of public services that accompanied Brazil's neoliberal transition (Morais and Saad-Filho 2005). PT's reconstruction of the system of power was geared toward satisfying the needs of financial capital and export-oriented sectors, while remaining loyal to the IMF-agreed programme to reach, or even exceed, the fiscal plus target (Kliass 2011). ...
... His bid was supported by a 'neo-developmentalist front': a coalition of disparate forces that had in common the experience of losses under neoliberalism and hazy expectations of a neo-developmentalist alternative. 4 These groups included the internal ('productive' as opposed to 'financial' and 'internationalized') bourgeoisie (see below for further details), the organized (formal) working class, the lower middle class, some informal workers and assorted political chieftains from marginalized regions. 5 This supporting coalition won against the 'neoliberal alliance', including the international fraction of the bourgeoisie, the upper middle class, that was ideologically committed to neoliberalism, and most informal workers that, in Brazil, traditionally voted with the right. ...
... This article reviews Lula's administration, highlighting the significance of its achievements from the point of view of the left (on his election and first administration, see Mollo and Saad-Filho, 2006;Morais and Saad-Filho, 2003;2005;2007). It focuses on this administration's implementation of "neo-developmentalist" policies and the gradual (re-)emergence of elements of a welfare state in Brazil-the articulation of a "national" capitalism driven by an alliance between the "national" bourgeoisie, 1 the popular organizations, the informal and rural sector workers, and the state. ...
Article
Full-text available
A review of the achievements of the Lula administration and an examination of the contrasting political and social programs that disputed the Brazilian presidential elections in October 2010 reveal that there has been significant progress toward the consolidation of a social democratic welfare state in Brazil and that further progress is possible but far from guaranteed under the new administration.
... Thus, rather than democratise access of more actors to the markets, the Brazilian neoliberal experience reinforced the maintenance of a concentrated distribution of income which not only affected the working classes but also the middle classes, agrarian exporters and national industrialists (Amann and Baer, 2002;Schmalz, and Ebenau, 2012). This was a time which produced the emergence of various social movements and pro-labour parties from which the most important was the PT which got to power in 2002 by aligning with the vast and diverse segments of the population which didn't benefit from the neoliberal policies (Morais and Saad-Filho, 2005). Indeed, while inflation did fall and productivity increased with real wages rising substantially over the 1990s, unemployment rates increased as work in the industrial sector got more specialised with the vast majority of people having to switch to poorly paied jobs, insecure service sector and informal occupations (Pedroso, 2016;Mendes and Cavedon, 2012). ...
Thesis
Informal urban street trade is a prevalent feature across the Global South where much of the production and/or buying and selling of goods and services is unregulated. For this reason, local authorities have historically seen it as backward, inefficient and detrimental to the development of urban areas and have thus developed formalisation programmes aimed to control and ultimately make it disappear. Critics argue that the design and implementation of these programmes can marginalise and disempower informal traders as it acts against the traders’ livelihoods and long-established practices they have developed for decades. This research speaks to these concerns and aims to investigate how informal urban street trade manages to continuously reproduce itself despite formalising efforts to make it vanish. The study follows a post-structuralist approach informed by post-development sensibilities (Escobar, 2011). The purpose is two-fold. First, to critically investigate the implications of imposed power-knowledge essentialism inherent to formalisation processes (Foucault, 1980). Second, to analyse the ways in which cultural and socioeconomic development is enacted through the daily assembling of informal urban street trade (Farías and Bender, 2012; McFarlane, 2011). The research offers a thick ethnographic inquiry, conducted over a one-year-long period (2014-2015) in the urban centre of Recife, Northeast capital of Pernambuco state, Brazil. Recife is a particularly rich site to investigate these issues as informal urban street trade has historically been pervasive of its squares and streets and the municipally has in place a formalisation programme aimed to gather information about traders, license them and relocate them into purposefully-built facilities. The ethnographic inquiry focused on the practices, knowledges, materials and technologies associated with the daily work of both informal traders, selling on the streets, and governing officials implementing the formalisation programme, both on the streets and on the City Council office. Primary data collection was gathered through ethnographic observations and fieldnote diaries enriched with pictures and audio recordings of the day-to-day sensorial experience of informal urban street trade. This was enhanced with informal conversations as well as semi-structured and unstructured interviews with governing bodies’ officials, licenced and unlicensed street traders, formal shop owners, and a diversified set of urban citizens. The thesis highlights that formalisation, through the introduction of regulations, classification schemes and practices of classifying traders through an information system, seeks to establish and expand an individualistic developmentality among all actors. Through this, formalisation aims to shape and normalise their everyday practices to focus on the City Council’s agenda of rendering informal street trade as problematic and turning the solution of formalised trade not only unquestionable, but desirable by all. More problematically, the formalisation programme’s overdetermination of what a socioeconomic order is to be and its imposition of individualising subjectivities to assist in its implementation acts against the traders’ collective and community-based understanding of work and livelihoods which, contrary to the formalisation discourse, greatly benefit the cultural and socioeconomic development of these communities. This is achieved through the traders’ daily assembling of work, value and supply on the streets. The findings reveal that the collective organisation of traders’ work is strongly based on a ‘cooperative ethos’ that is not only efficient in taking advantage of and adapting to the challenging conditions of street markets, but also is key on the ongoing fostering and strengthening of the local community identity. The findings also show that traders, through their tacit knowledge of the best fits between products, services and sites, are key in shaping the valuation of both formal and informal enterprises as well as urban sites thus bolstering the local economy. Lastly, the findings also reveal that, through their interactions with formal and informal supply circuits, street traders are fundamental for the distribution and promotion of local artists and producers thus helping on the support and fostering of local culture. The main contribution of this research is it offers novel empirical and theoretical insights on the ways in which formalisation and informality are performed. It richly reveals the contested nature of development that is negotiated daily between the individualist developmentality imposed by formalisation and the communitarian- based development possibilities which are enacted through informal trading practices. These developmental possibilities are turned invisible by formalisation as classification enforces a strong reading of street trade which is ontologically distant and even contrary to the community-based values which make street trade not only resilient to formalising efforts but also adaptive to the challenging conditions and, more importantly, central to the cultural and socioeconomic development of these communities.
... Moreover, this article considers that the origins of the WSF and the role played by this corporate group in it were favourably shaped by the transformation of the PT from an anti-systemic social movement party -born from the convergence of the new labour movement, popular-base groups, grassroots Catholic organisations and clandestine leftwing militants -to a party of government advancing a 'social neoliberal' agenda, whereby state-led social policies are supported by neoliberal economic policies (Samuels 2004b;Morais and Saad-Filho 2005;de Oliveira 2006;Rollemberg Mollo and Saad-Filho 2006;Singer 2009). Although the moderation of the PT's socialist and social movement project has been amply studied (Samuels 2004a;Panizza 2005;Marques and Mendes 2006;Paiva 2006;Hunter 2007;Ribeiro 2008), the implications this moderation had for the WSF have been rarely engaged in the literature. ...
Article
Full-text available
In its assessment of the origins and early development of the World Social Forum this article challenges traditional understandings of the Forum as representing ‘globalisation from below’. By tracing the intricate relations among elements of business, civil society and the Workers' Party in the first years of the Forum, this article reveals the major role played by a corporate movement stemming from the Brazilian democratisation process in the 1980s, and how this combined with the transformed agenda of the Workers' Party as it gained higher political offices to constrain the Forum's activities from the outset. In so doing, this article challenges not only widespread conceptions of the Forum as a counter-hegemonic alternative but also current critiques concerning its subsequent limitations. Furthermore, it reveals how traditional understandings of the World Social Forum and of global civil society are underpinned by flawed assumptions which typecast political activities in the global ‘South’.
Article
This article analyses Brazilian involvement in private labour and environmental governance. It does so by mapping the local actors participating in three recent international initiatives—the UN Global Compact, the Global Reporting Initiative, and the ISO 26000 Working Group—and exploring the activities of a central group around the Ethos Institute for Business and Social Responsibility. The article argues that the privileged position of this group of actors is supported by the lasting association between a sector of Brazilian business and influential political players, in particular the ruling Workers' Party. On this basis, the article discusses the model of institutional complementarity, suggesting that both the local network and the global initiatives benefited from the narrow state–society relations pervading Brazilian politics. The article contests the claim that emerging economies are necessarily disadvantaged newcomers to private governance, and calls for greater attention to the interface between international initiatives and local political institutions.
Chapter
The Real Plan led to the control of hyperinflation in Brazil. The reforms underpinning the Brazilian struggle against inflation include privatization, trade liberalization, and monetary and fiscal reforms represented in the issue of a new currency, the Real. There were two elements that made possible the final consolidation of economic governance; first, after the Real Plan was implemented, there was a credible threat of hyperinflation. Second, there was a consensus on the political measures needed to address such threat. With this new set of policies in place, economic governance was consolidated since the possibilities for vested interests to affect the outcome of economic policies was substantially reduced. The complementarity between policies that helped to control hyperinflation illustrates a successful consolidation of economic governance.
Chapter
In the second half of 2008, two events occurred that are, individually and together, highly significant for the future of global health. First, in August 2008 the World Health Organization (WHO)’s Commission on Social Determinants of Health (CSDH) released its final report (Commission on Social Determinants of Health, 2008; for a brief summary, see Marmot and Friel, 2008; Marmot et al., 2008). The 19-member Commission, established in 2005, began its extraordinary report with the observation that: ‘Social injustice is killing people on a grand scale’. The concepts of health equity and socioeconomic gradients in health were central to the Commission’s unequivocally normative analysis. Health equity was defined with reference to the absence of systematic differences in health that are avoidable by reasonable action … and the Commission considered most such differences to be avoidable and therefore inequitable (Commission on Social Determinants of Health, 2007, p. 1). Socioeconomic gradients in health are disparities in health outcomes related to various indicators of social (dis)advantage; such gradients are ubiquitous, not only between countries but also within them. The Commission’s perspective on such gradients is worth quoting at length:
Article
Full-text available
This paper subjects to critique the ‘new institutionalism’ in development policy literature. It highlights the way ‘second generation’ institutional reform processes in the Latin American region are to be engineered through a politics of global competitiveness while their success is to be gauged, first and foremost, in capital-functional terms. The paper culminates in the focused critique of an Inter-American Bank flagship report, The Politics of Policies, which demonstrates the new institutionalism's prejudice against any form of political leadership that does not seek to guarantee a competitive investment climate as well as an uncompromising commitment to a politics of global competitiveness. Over the past decade, a broad consensus has emerged that ‘institutions matter’. (Fukuyama, 2007: xv)
Article
Brazil's Partido dos Trabalhadores (PT), well into its second term in national office, is today heavily criticized for its conservative economic policies when only a few years ago it was celebrated for re-invigorating the country's democracy and giving voice to its poor majority. In this essay, we discuss the role of participation in the party's politics since its inception, with a focus on the national administration. We argue that what is distinctive about the national administration is not so much the real or perceived transition of the PT to the ideological center or its economic policies per se, but the abandonment of one of the hallmarks of the PT in power: its creative forms of empowered popular participation. Even if these practices were translated to global forums, they were not translated to the national governance and this has locked the party into increasing conflict with, and isolation from, its base of support among social movements.
Article
Full-text available
The goal of this article is to acquire an understanding of the continuity of macroeconomic policy, from the Fernando Henrique Cardoso administration through the Lula government. The article is organized in three parts. In the first one, we provide a succinct description of the macroeconomic policies of Cardoso and Lula administrations. In the second, we present and discuss the debate within specialized literature on the hypothesis of continuity in macroeconomic policy from the one administration to the next. In the third section, we provide a mapping of State leadership within which we emphasize certain aspects that contributed to the continuity between both administrations. Without neglecting consideration of the actions of those who were the ultimate beneficiaries of these politics, we identify three factors that explain the maintenance of macroeconomic policy: i) the structure of Brazilian capitalism and its place within the world economy; ii) the strength of the orthodox ideas disseminated by the media and dominant within the economic team (the Ministry of Internal Revenue and the Brazilian Central Bank) that was recruited from the same "field"; and iii) Worker's Party acceptance of the "rules of the game" of democracy.
Article
Full-text available
O objetivo deste artigo é investigar os aspectos econômicos e sociais do governo Lula que proporcionaram crescimento inclusivo e sustentado da renda na primeira década de século XXI. Para isso, o trabalho analisou a transição das políticas macroeconômicas e sociais nos governos FHC - Lula, buscando apontar os elementos de continuidade e inflexão de tais políticas. Embora tenha havido muitos aspectos que indicam continuidade entre os dois governos, especialmente na área macroeconômica, o trabalho procurou destacar os avanços consideráveis na área social do segundo mandato do governo Lula. Com base na discussão proposta, é possível concluir que muitos dos elementos de sucesso econômico e social do governo Lula, pós-2006, tem vínculos com um modelo de política que buscou alinhar o lado econômico e o social.
Article
Most 'progressive' Latin American governments, which have come to power over the past decade or so, continue to rely on agriculture and resource extraction as the primary generators of wealth. Scholars argue that this 'neoextractivism' is made politically possible by directing some profits toward the funding of progressive social programs. The Brazilian Amazon's vast wealth of extractive resources and its large economically depressed population make it the emblematic site for neoextractivism. Its biodiversity and inhabited landscapes, however, mean that the neoextractive program encounters concerted resistance from the global environmental community as well as from traditional, indigenous, and migrant smallholders. In response, neoextractivism must deploy another form of progressivism-environmentalism. The author uses the case of agroindustrial soy production in the Brazilian Amazonian state of Para to demonstrate how the emergence of environmental governance there facilitates neoextractivism by 'greening' it. Through an analysis of the mechanisms and effects of two programs, implemented through partnerships between nongovernmental organizations and corporations, to manage soy expansion into the Amazon, it is demonstrated that these programs have questionable environmental benefits at best and at worst work to reenforce the hegemony of international environmental organizations, to green the image of agri-business multinationals, and to destabilize strategies of resistance.
Chapter
Full-text available
The presidential election of Luiz Inácio Lula da Silva, the leader of the Brazilian Workers’ Party (Partido dos Trabalhadores, PT) in 2002 was considered by many commentators to have been an important victory for the Brazilian working class.1 Lula’s election was also claimed to have been one of the most important achievements of the international left in this generation, and evidence of the decline of neoliberalism in Latin America. However, Lula’s administration has bitterly disappointed many of his supporters in Brazil and abroad, and it has accelerated the fragmentation of the Brazilian left. Several high profile petistas subsequently abandoned the party, and scores of members have expressed their dissatisfaction with the alleged ethical and political degeneration of the PT. In their view, the PT has pursued the same neoliberal macroeconomic policies that it previously scorned, and that characterized the administration led by the ex-Marxist sociologist Fernando Henrique Cardoso.
Chapter
Es gibt kaum einen Politikbereich in Brasilien, zu dem die Einschätzung verschiedener Beobachter der zurückliegenden Regierung Luiz Inácio Lula da Silva (Partido dos Trabalhadores PT, 2003-2010) so weit auseinandergeht, wie in der Wirtschaftspolitik. Gerade in den ersten Amtsjahren der Regierung ab 2003 wurde deren Ausrichtung oft heftig kritisiert oder aber auch überschwänglich gelobt. Während ehemalige Weggefährten des früheren Gewerkschaftsführers Lula wie Emir Sader (2005: 535) harsche Worte für die Kontinuität der wirtschaftspolitischen Ausrichtung zur Vorgängerregierung von Fernando Henrique Cardoso (Partido da Socialdemocracia Brasileira PSDB, 1995-2002) waren gerade die internationalen Finanzinstitutionen wie der Internationale Währungsfonds (IWF) und die brasilianischen Machteliten begeistert. Und ungeachtet dieser zwiespältigen Bewertung schienen alle Anzeichen auf eine Fortsetzung der orthodoxen Finanzpolitik zu stehen. Die Regierung erwirtschaftete hohe primäre Haushaltsüberschüsse, setzte auf den Export, führte die Hochzinspolitik fort und griff keineswegs zu Mitteln wie Verstaatlichung. Doch seit der zweiten Amtszeit ab 2007 setzte die Regierung Lula eine verstärkte staatliche Regulierung durch, die v.a. in der Weltwirtschaftskrise 2008/09 von Bedeutung war. Nun veränderte sich die Diskussion um die brasilianische Wirtschaftspolitik: Im Mittelpunkt stand nun die Frage, ob dieser Wandel einen Regimewechsel (Sicsú 2007) einleiten werde oder vielmehr eine bloße Verschiebung innerhalb der neoliberalen Gesamtausrichtung darstelle (Paulani 2008).
Chapter
In his article on economic policy, Stefan Schmalz looks into the assumption that there has been a slow re-orientation process in Brazil that favored the return of the developmentalist State. Accordingly an economic model with more State influence gained strength, quasi as a counterpart to what happened within the neo-liberal model in the early 1990s. The gradual and negotiated transition to a new developmental State model (novo desenvolvimentismo) was possible through a social democratic alliance at the parliamentary level after the economic crisis of the late 1990s. Under Lula the system obtained a new quality, above all through massive programs for infrastructure development (programas de aceleração do crescimento, PAC I and II). Nonetheless, this development model is still considered contradictory as environmental and rural conflicts remain unsolved. Thus, despite the income growth, the rural population is still excluded from the modernization project while the high concentration of land property continues to exist.
Article
On June 17, 2013, Brazilians took to the streets in militant rallies and marches against transit fare hikes, poor-quality education and health care services, and the immense public investment in “mega-events” such as the 2014 World Cup and the 2016 Olympics. These massive demonstrations capped off a two-week series of demonstrations initially provoked by a 20-cent increase in bus, train, and subway fares in São Paulo. In the face of brutal police repression, the harsh opposition of politicians and the major political parties, and the clear bias of the mass media, the largely young and working-class protesters soon forced municipal governments in over 100 cities to revoke proposed fare increases. Explanations for the June Days and the ensuing political crisis, which have been the subject of fierce debates in activist and scholarly circles in Brazil, ignore the role of particular forms of capitalism, the adoption of neoliberalism by Workers’ Party governments, and the changing forms and conditions of class struggle.
Article
Full-text available
El presente trabajo analiza la articulación político-social y el esquema de poder gobernante en Brasil durante los gobiernos del PT. Se estudia cómo la articulación nacional popular neodesarrollista encabezada por el liderazgo de “Lula” tendrá una influencia decisiva en el Estado, en un contexto internacional favorable. Por otro lado, se pretende observar la crisis de la articulación lulista y caída del gobierno del PT, especialmente en relación a dos puntos de inflexión fundamentales: la modificación del escenario internacional, y la agudización de las contradicciones de la articulación nacional-popular neodesarrollista, en el marco de los límites de la dependencia.
Chapter
The Worker’s Party won successive elections between 2002 and 2014. During this period, it was instrumental in implementing a slew of social policies. As a result, inequalities declined and the conditions of living of millions of Brazilians improved. Starting from 2014, however, the leftist experiments have started to give way. The economy has slid into a crisis, and on the political front, the Worker’s Party has faced increasing isolation. This chapter analyses the nature of the political and economic crisis that has engulfed Brazil in recent years.
Article
Once widely regarded as the workers greatest hope for a better world, the ALP today would rather project itself as a responsible manager of Australian capitalism. Labor's Conflict provides an insightful account of the transformations in the Party's policies, performance and structures since its formation. Seasoned political analysts, Tom Bramble and Rick Kuhn offer an incisive appraisal of the Party's successes and failures, betrayals and electoral triumphs in terms of its competing ties with bosses and workers. The early chapters outline diverse approaches to understanding the nature of the Party and then assess the ALP's evolution in response to major social upheavals and events, from the strikes of the 1890s, through two World Wars, the Great Depression, and the post-war boom. The records of the Whitlam, Hawke, Keating, Rudd and Gillard governments are then dissected in detail. The compelling conclusion offers alternatives to the Australian Labor Party, for those interested in progressive change.
Article
Full-text available
This article explains the context of Lula's election for the Brazilian presidency, and the scope for progressive economic and social change in the country. We argue that although the ruling coalition is on the political left, the new administration is not, and it will face grave difficulties to achieve traditional left objectives, including universal citizenship and greater equality of income and wealth.
Article
Full-text available
This article outlines a political economy analysis of Brazilian high inflation and stabilization. The paper explains the distributive and monetary aspects of inflation and the gradual fragmentation of the Brazilian currency. It also reviews the most important aspects of the Real stabilization plan, the de-indexation of the economy, and its rapid “liberalization” and “internationalization.” The paper shows that, in spite of the successful reduction of inflation, the Real plan was highly vulnerable to shifts in international liquidity; partly for these reasons, it led to de-industrialization and high unemployment. In addition to this, the Real plan contributed to an increase in income inequality and the development of sharp social conflicts in Brazil. These weaknesses were the main factors responsible for the currency crisis in January 1999.
Article
Full-text available
"Brazil "Delivery': The Political Economy of the Lula Government". This paper discusses the new Brazilian government's economic policy at the beginning of 2003. It argues that surprisingly the government of PT (Worker's Party) has fallen into the perverse logic of "credibility". This logic implies the death of macroeconomics and will impede the imperative retaking of growth. Furthermore it demonstrates that the arguments of government to justify this unconditional surrender to orthodox econom- ics makes no sense because it is not possible to prove that Brazilian economy was falling down a precipice at the beginning of the new administration. It also suggests that the spurious identification between responsible administration and liberal economic policy may be pointed as one of the reasons of this astonishing result.
Article
Full-text available
This paper aims at analyzing – from a Post Keynesian approach -the Brazilian banking behavior in the current phase of the business cycle that is at the semi-stagnation state of the economy. According to the Post Keynesian approach, banks are economic agents that have liquidity preference determined strongly by their expectations under uncertainty, managing their portfolio according to the trade-off between liquidity and profitability. We argue that banking behavior in Brazil has been determined by the specific institutional-macroeconomic context of the current phase of the Brazilian economy, with banks taking advantage of the high rates of interest and the conditions in which government has managed its internal debt. But at the same time banking strategies are determinant of the current phase since portfolio allocation has been dominated by a short-termist behavior and high liquidity preference that have resulted in low credit supply and high banking spread. This environment has favored the adoption of a conservative but profitable posture by banking sector in Brazil. As a result, the bank trade off between liquidity and profitability – that is the starting point of the liquidity preference approach – does not apply to the current Brazilian case due to the specificities of the institutional-macroeconomic context.
Article
Full-text available
O Modelo Macroecon�mico Brasileiro tem como Caracter�sticas: Abertura Financeira, uma Estrat�gia de Crescimento Baseada em Poupan�a Externa, um C�mbio Sobrevalorizado, D�ficit em Conta Corrente, um Alto N�vel de Endividamento Externo, uma Taxa B�sica (Selic) de Juros Elevada, uma Infla��o Baixa, Por�m, Inercial, uma Pol�tica Fiscal Frouxa, Poupan�a P�blica Negativa, Alto N�vel de Endividamento do Estado, Baixas Expectativas de Lucros, Sal�rios Estagnados, uma Taxa de Poupan�a Dom�stica Deprimida, Baixo N�vel de Investimento, Alta Taxa de Desemprego e uma Renda Per Capita Pr�xima da Estagna��o. a Economia Brasileira Atingiu uma Estabiliza��o de Pre�os em 1994 Mas, N�o, uma Estabiliza��o Macroecon�mica, na Medida em que n�o se Conseguiu um Equil�brio Intertemporal e Termos Fiscais e nas Contas Externas. o Crescimento S� Voltar� se as Autoridades Reconhecerem que a Economia do Pa�s Est� Presa Numa Armadilha Dupla que Envolve a Taxa de Juros e o C�mbio e Decidirem Inverter o Processo Perverso da Equa��o Macroecon�mica Escorada em Altas Taxas de Juros e Num C�mbio Sobrevalorizado. Entretanto, as Ortodoxias Internacional e Dom�stica que Determinam a Pol�tica Macroecon�mica no Pa�s, Continuam a se Valer da Macroeconomia Convencional para Tentar Compreender Problemas n�o Convencionais E, Assim, s�o Incapazes de Atingir a T�o Desejada Estabilidade Macroecon�mica.
Article
Full-text available
The characteristics of recent capital inflows into Latin America are discussed. It is argued that these inflows are partly explained by conditions outside the region, like recession in the United States and lower international interest rates. This suggests the possibility that a reversal of those conditions may lead to a future capital outflow, increasing the macroeconomic vulnerability of Latin American economies. Policy options are argued to be limited.
Article
What animal species does contemporary Brazil most resemble? The strange forms of a society that no longer enjoys the options of underdevelopment, without acquiring the dynamics of globalized development, in the liveliest exploration to date of the possible meaning of Lula's government.
Article
Editorial Reviews Product Description As a result of the liberalization of the 1980s, the financial system has acquired a prominent role in developing economies. It is now conventional wisdom thafinancial liberalization' is the means to stimulate economic development. Investment Finance in Economic Development challenges this assumption and offers an alternative view. The book presents a post-Keynesian approach to the role of banks, financial markets and savings in economic development. It departs from the conventional belief that financial institutions are mere intermediaries between savers and investors, to show that banks have a key, active role in the process of investment finance and growth. Further, financial markets, as the loci of allocation of financial savings, are shown to have an important role in supporting financial stability during the process of growth.
Article
THIS PAPER PROVIDES AN INTERPRETATION of the Brazilian Real (stabilisation) plan, and its recent collapse. The plan was designed to maximise Brazil's ability to profit from the exceptional liquidity of the international credit markets, when low interest rates in the industrialised economies (especially the US) facilitated surges in capital flows to a select group of countries, the so-called ‘emerging markets.’ The general backdrop of the Brazilian plan, as well as similar policy initiatives in other emerging markets, was the neo-liberal fundamentalist prescription that countries should ‘liberalise, privatise, cut government spending and show to the world your commitment to liberal principles.’ Allegedly, this would be enough to inspire investor confidence, and allow the country to benefit from the exuberant power of capital inflows. The events that followed the adoption of that prescription in Brazil tell a very different story.
Article
This paper complements the findings of Atal, Ñopo and Winder (2009) on gender and ethnic wage gaps for 18 Latin American countries circa 2005 by analyzing gender wage gaps for the same countries between circa 1992 and circa 2007. During this span the overall gender earnings gaps dropped about 7 percentage points, while the unexplained component dropped between 3 and 4 percentage points, depending on the control variables used. The gap declined most notably among workers at the bottom of the earnings distribution, with children at home, the self-employed, part-time workers and those in rural areas—the segments of the labor market that were previously reported as having the highest unexplained gender disparities. Most of the reduction in unexplained gaps occurred within segments rather than due to the composition of labor markets. The paper additionally finds a limited role for job tenure in explaining gender wage gaps.
Special Issue on 'The Lula Administration
  • Análise Econômica
Análise Econômica 2003, Special Issue on 'The Lula Administration', 21, 40.
  • Philip Arestis
  • Malcolm C Sawyer
Arestis, Philip and Malcolm C. Sawyer 1998, 'New Labour, New Monetarism', Soundings: A Journal of Politics and Culture, 9: 24-41.
Neoliberalism and the Third Way
  • Philip Arestis
  • Malcolm C Sawyer
Arestis, Philip and Malcolm C. Sawyer 2005, 'Neoliberalism and the Third Way', in Neoliberalism: A Critical Reader, edited by Alfredo Saad-Filho and Deborah Johnston, London: Pluto Press.
A Opção Brasileira, Rio de Janeiro: Contraponto. Lula and the Continuity of Neoliberalism in Brazil • 31
  • César Benjamin
Benjamin, César 1998, A Opção Brasileira, Rio de Janeiro: Contraponto. Lula and the Continuity of Neoliberalism in Brazil • 31
As Eleições de 2002 e o Significado do Governo Lula: Uma Contribuição ao Debate dos Desafios Diante da Esquerda Brasileira
  • Borges Neto
  • M João
Borges Neto, João M. 2004, As Eleições de 2002 e o Significado do Governo Lula: Uma Contribuição ao Debate dos Desafios Diante da Esquerda Brasileira, unpublished manuscript.
Brazil Carnival of the Oppressed -Lula and the Brazilian Workers' Party
  • Sue Branford
  • Bernardo Kucinski
Branford, Sue and Kucinski, Bernardo 1995, Brazil Carnival of the Oppressed -Lula and the Brazilian Workers' Party, London: Latin America Bureau.
Sobre as Negociacoes da Alca e do Mercosul', in Governo Lula: Decifrando o Enigma
  • Rafael Gentili
Gentili, Rafael 2004, 'Sobre as Negociacoes da Alca e do Mercosul', in Governo Lula: Decifrando o Enigma, edited by L.T. Soares et al., São Paulo: Viramundo.
The Duckbilled Platypus in the Labyrinth, or the Eighteenth Brumaire of Luiz Inácio
  • Francisco Oliveira
Oliveira, Francisco 2004, The Duckbilled Platypus in the Labyrinth, or the Eighteenth Brumaire of Luiz Inácio, unpublished manuscript.
Quando o Medo Vence a Esperança: Um Balanço da Política Econômica do Governo Lula
  • Leda M Paulani
Paulani, Leda M. 2004, 'Quando o Medo Vence a Esperança: Um Balanço da Política Econômica do Governo Lula', Crítica Marxista, 19: ??-??.
As Restricoes das Novas Regras do Comitê da Basiléia sobre as Condicoes de Financiamento dos Países Periféricos
  • Maria C F Penido
  • Daniela M Prates
Penido, Maria C.F. and Daniela M. Prates 2001, As Restricoes das Novas Regras do Comitê da Basiléia sobre as Condicoes de Financiamento dos Países Periféricos, São Paulo: DIESP/Fundap.
Sistema Financeiro e Desenvolvimento: As Restrições das Novas Regras do Comitê da Basiléia sobre os Países Periféricos
  • Maria C F Penido
  • Daniela M Prates
Penido, Maria C.F. and Daniela M. Prates 2003, 'Sistema Financeiro e Desenvolvimento: As Restrições das Novas Regras do Comitê da Basiléia sobre os Países Periféricos', in Liberalizacao Econômica e Crescimento: Modelos, Políticas e Restricoes, edited by J.C. Ferraz, M. Crocco and A. Elias, São Paulo: Futura.
O Trabalho sob Fogo Cruzado: Exclusão, Desemprego e Precarização no Final do Século
  • Marcio Pochmann
Pochmann, Marcio 1999, O Trabalho sob Fogo Cruzado: Exclusão, Desemprego e Precarização no Final do Século, Sao Paulo: Contexto.
Agenda Brasil: Políticas Econômicas para o Crescimento com Estabilidade de Precos
  • Sicsú
  • José L João
  • Luiz F Oreiro
  • Paula
Sicsú, João, José L. Oreiro, and Luiz F. Paula (eds.) 2003, Agenda Brasil: Políticas Econômicas para o Crescimento com Estabilidade de Precos, Rio de Janeiro: Manole.
Estrutura e Operação dos Sistemas Financeiros no Mercosul: Perspectivas a Partir das Reformas Institucionais dos Anos 1990 e para a Integracao Financeira das Economias do Bloco
  • Rogério Studart
Studart, Rogério 1999a, Estrutura e Operação dos Sistemas Financeiros no Mercosul: Perspectivas a Partir das Reformas Institucionais dos Anos 1990 e para a Integracao Financeira das Economias do Bloco, Rio de Janeiro: Cepal/IPEA/IE-UFRJ.
Financial Opening and Deregulation of Brazil's Financial Systems in the 1990s: Possible Effects on its Pattern of Development Financing
  • Rogério Studart
Studart, Rogério 1999b, Financial Opening and Deregulation of Brazil's Financial Systems in the 1990s: Possible Effects on its Pattern of Development Financing, unpublished manuscript.